The State Bank of Vietnam has just issued the Circular No. 38/2014/TT-NHNN dated December 08, 2014 on dossier, order and procedures for approving the foreign investor’s purchase of Vietnamese credit institution’s shares. At the same time, within 40 days from the date of full receipt of valid dossier, the State Bank shall review the dossier for approval or disapproval in writing concerning the foreign investor’s purchase of shares. In case of disapproval, the State Bank must specify the reasons in writing.
The dossier includes declaration about the shareholding of foreign investor and related persons of foreign investor in Vietnam at Vietnamese credit institutions up to the time of dossier submission; written confirmation of the bank on the deposit balance of the foreign investor’s deposit account or other documents proving the foreign investor has sufficient legal financial sources to purchase shares; . Curriculum, copy of passport or other legal personal identity of the foreign investor as individual, of the foreign investor’s legal representative and the authorized person to be the representative of the foreign investor’s capital as the institution at the Vietnamese credit institution.
Within 30 days from the date the competent authorities accept in writing the foreign investor’s purchase of Vietnamese credit institution’s shares, the foreign investor must transfer all amount of money registered for purchase of shares to the blocked indirect investment account in Vietnam dong at a credit institution or branch of foreign bank with permitted foreign exchange activities or supply of foreign exchange services under the Vietnamese law and only use this amount for the purpose of buying the Vietnamese credit institution’s shares with the approval from the competent authorities. In case of purchase of shares of the credit institution which has been listed on the stock market, before placing the trading order, the foreign investor must have adequate money in account for the trading under regulation.
This Circular takes effect on February 01, 2015.
